Items

Although recusing himself from the initial energy agenda items, the newest member of the five-person California Pubic Utilities Commission (CPUC), John Bohn, was sworn into office Thursday and minutes later attended the CPUC’s regularly scheduled biweekly business meeting, which included a formal introduction by CPUC President Michael Peevey. Bohn, 67, a Harvard law graduate appointed last Monday by Gov. Arnold Schwarzenegger, said he hopes to “give back a little bit to the state of California” in which he was born. Although having been sworn in 15 minutes ahead of the meeting, Bohn said he would “recuse” himself on all energy issues on the agenda, and “abstain on all matters other than the broadband report,” noting that was what he called “an appropriate way to proceed.” His nomination will require state Senate confirmation as will the appointment of Dian Grueneich, who was named in January to a spot on the commission. On a more somber note, Peevey announced the deaths of two former CPUC commissioners, one of whom, Don Vial, was a close personal friend of his who headed the CPUC in the 1980s, and most recently was one of the board members on the now disbanded California Power Authority that was created in mid-2001 in response to the state’s energy crisis at the time. In addition to Vial, 81, who died last Friday in San Rafaeil, CA, the state’s first female CPUC commissioner, Claire Dedrich, 74, passed away earlier in the month at her home in Sacramento. Vial was a labor economists, Dedrich, a Ph.D microbiologist.

DTE Energy Co. reported a 39% increase in fourth quarter earnings per share, including special items, but a 33% drop in earnings per share for the year, including $1.13/share special charge related to its merger with MCN Energy. Operating earnings for the year before special charges were $536 million, or $3.48 per diluted share, compared to $484 million, or $3.39 per diluted share. CEO Anthony F. Earley Jr. said the weak economy and mild weather in the fourth quarter hurt both electricity and gas sales, but increased earnings growth for DTE’s non-regulated subsidiaries, coupled with targeted cost-reduction programs throughout the company, helped the company achieve attractive financial results. “Our non-regulated energy businesses had an impressive showing in 2001, contributing $162 million in net income, which exceeded our $130 million target for the year,” Earley said. “We expect these businesses to continue to build momentum in 2002.” The company got a strong performance from its coal operations, including the expansion of its synthetic fuel program and three facilities, which processed 2.3 million tons of coal. It increased profits at DTE Coal Services by 85%. The addition of MichCon’s natural gas business boosted net income in the fourth quarter. MichCon was not a part of DTE Energy operations in 2000. However, it had lower electric revenues due to lower overall sales to industrial and wholesale customers driven by the recession and the legislatively mandated rate reductions for commercial and industrial customers. It also had higher electric operation and maintenance expenses. Earley said that DTE Energy’s business plans continue to support an increase in its compound annual earnings growth rate from 6-8% by 2005. However, growth this year largely will depend on the pace of economic recovery, the impact of weather on gas sales in the first quarter and how many customers are lost to alternative electric and gas suppliers, he added. “With these uncertainties in mind, DTE Energy is providing an earnings guidance range for 2002 of $3.70 to $4 per share,” he said. “Our previously issued 2002 guidance of $4 per share will be a stretch, but is still within reach. Our non-regulated businesses, especially the coal-based fuels segment, are well-positioned for increased earnings growth next year.”

DPL reported yesterday that it has notched a record for earningsper share before extraordinary items in 2000 at $1.56, a 15%increase over the $1.35 mark the company posted for 1999. Likewise,the company beat 1999’s fourth quarter level of $0.27 per share by$0.10. For the fourth quarter, the company posted net income of $45million, compared to the 1999 level of $40.6 million. For the year2000, DPL’s net income was $199 million, which shows a slightdecrease from the $204.2 million the company showed in 1999. “Our2000 financial and operating results reflect the significant stepswe took in preparing the company for the deregulated energymarket,” said CEO Allen Hill. “In addition, our focus on merchantgeneration expansion will lead to continued industry leadinggrowth.” DPL expects 2001 earnings per share to increase more than20% from the $1.56 in 2000 to $1.90. In addition, DPL forecaststhat its earnings are expected to increase at an annual rate of atleast 10% after 2001, and could reach a rate of up to 15%.Ohio-based DPL has two subsidiaries, DPL Energy and Dayton Power& Light Co.

Statoil Energy, the largest Appalachian Basin gas reserve holderand a top energy marketer and independent power producer, was puton the auction block yesterday after having failed in its attemptthis summer to find a partner to invest about $1 billion in itsfuture.

California energy regulators last week identified 10 items forpotential natural gas industry restructuring, most of which dealwith wholesale or large customer operations. State regulators alsoencouraged utilities and large customers to cease their bickeringand come up with a broad-based settlement on gas unbundling.

California energy regulators yesterday identified 10 items forpotential natural gas industry restructuring, most of which dealwith wholesale or large customer operations. State regulators alsoencouraged utilities and large customers to cease their bickeringand come up with a broad-based settlement on gas unbundling.

BP Amoco first quarter replacement cost profit, beforeexceptional items, was $761 million after adjusting for specialcharges of $84 million for merger integration costs. Results weredown 12% from the previous quarter and down 41% from the firstquarter of 1998. The decrease reflected a substantial deteriorationin the trading environment, the company said.

New U.S. Energy Secretary Bill Richardson said two importantitems he would be pursuing in his visits last week to Venezuela andMexico would be the hemispheric integration of energy policy andthe possibility of a common electric grid. He added it is highlysignificant and symbolic that this first official call on foreigngovernments as Energy Department head will be to the two LatinAmerican nations most important to U.S. energy interests.

New U.S. Energy Secretary Bill Richardson said two importantitems he will be pursuing in his current visits to Venezuela andMexico will be the hemispheric integration of energy policy and thepossibility of a common electric grid. He added it is highlysignificant and symbolic that this first official call on foreigngovernments as Energy Department head will be to the two LatinAmerican nations most important to U.S. energy interests.